1. (a) Form.

   1. (1) Enterprise zones and enterprise projects. An application must be filed on letter-sized paper and must contain all information and documentation required under the Act and this chapter, as applicable. The application must be submitted in a three-ring loose-leaf binder. Each application for designation as an enterprise zone, for enterprise zone boundary amendments, recycling market development zone, and for enterprise project designation must be typed directly on the form provided by the department and must include all applicable attachments as specified in the application.
   2. (2) Certifications or refunds. An application to request refunds, tax reductions, or certification of new permanent jobs created or jobs that have been retained, or certification as a qualified business to qualify for refunds or deductions of state sales, use, franchise taxes, or other state benefits encouraged under the Act, as appropriate, or an application to request certification by the department of a neighborhood enterprise association, must be made to the department in writing on the appropriate forms provided by the department or the Comptroller of Public Accounts.

2. (b) Filing.

   1. (1) Enterprise zones.

      1. (A) Applications for enterprise zone designation, enterprise zone boundary amendments, or recycling market development zone designation may be filed with the department on any day. The applicant shall file with the department an original of an application for designation of an enterprise zone, enterprise zone boundary amendment, or recycling market development zone if by separate application from an enterprise zone or zone boundary amendment application. A separate application must be submitted to the department for each area nominated for designation as an enterprise zone or to amend the boundaries of a designated enterprise zone.
      2. (B) During the six-month period preceding the expiration of designation as an enterprise zone, an application may be filed for a new zone designation for the area or portions of the area, to become effective upon the designation expiration date or no later than the 90th day after the day of receipt of the application. An application that includes land area previously designated as an enterprise zone will be subject to review by the department for evaluation of past performance to promote and develop the zone in accordance with the applicant's or applicants' attempts to meet the original zone objectives and to fulfill commitments outlined in the zone application from which zone designation was previously approved. In the event that the department determines from the evaluation of prior zone performance that the applicant or applicants have made insufficient use of the zone designation to advance the purposes of the Act as represented in its original enterprise zone application and its agreement with the department to designate the area as an enterprise zone, the department may deny approval of an area or portions of areas as authorized by the Act, §2303.111.
   2. (2) Recycling market development zones. Applications for recycling market development zone designation may be simultaneously submitted to the department as part of an application for enterprise zone designation. To achieve designation as a recycling market development zone for an enterprise zone designated prior to September 1, 1993, a separate application must be filed with the department that meets the requirements for designation as a recycling market development zone.
   3. (3) Recycling market development zone loans and grants. Applications to the department in the form prescribed by the department and procedures for filing will be established as funds become available from appropriated funds or from any special fund and interest earned therefrom, less administrative recovery portion determined by the department. The department may adopt rules concerning interest rates, repayment plans, or any other operational details as determined appropriate.
   4. (4) Enterprise projects. Applications for enterprise project designation may be filed on or before, but no later than, quarterly deadlines published by the department in §176.10(b)(1) of this title (relating to Approval Standards) for consideration. Applications received after a published deadline will not be reviewed and considered for designation until after the next published deadline. The applicant shall file with the department an original of an application for designation as an enterprise project.
   5. (5) Qualified hotel project. Applications for a qualified hotel project designation may be filed on any day. The applicant must file with the department a certified copy of a resolution nominating the hotel project and a description or summary of the project detailing the nature of the business, estimated number of new jobs to be created, and the projected capital investment. To permit the department to designate the applicant as a qualified hotel project, the project shall be deemed to have met all qualifications under the Act, §2303.003 and §2303.5055. Furthermore, the qualified hotel project designation shall not be considered in determining the number of enterprise projects that the department may approve pursuant to the other provisions of this Act.

   6. (6) Certifications.

      1. (A) Enterprise projects.

         1. (i) Requests for job certifications may be filed with the department on any day. A job certification request may be made annually or semiannually.
         2. (ii) An enterprise project must be annually certified by the department as a qualified business to receive its state sales and use tax refunds and franchise tax reductions.
         3. (iii) Requests for refunds for designated enterprise projects should be filed directly with the Comptroller in accordance with the applicable Comptroller rules.

      2. (B) Qualified business.

         1. (i) Requests for job certifications for qualified businesses, other than designated enterprise projects, may be filed with the department on any day within 12 months after the last day of the nomination period as a qualified business in the applicable governing body or bodies nominating resolution.
         2. (ii) Requests for refunds of state sales and use taxes and franchise taxes available to businesses nominated for one-time incentives for designated qualified businesses should be filed directly with the Comptroller in accordance with the applicable Comptroller rules.
         3. (iii) Through the applicable governing body or bodies to the department, a residential builder may request certification as a qualified business to construct single or multifamily housing in the governing body's or bodies' enterprise zone even though the builder's principle office or headquarters is located in the state of Texas outside the zone. The governing body or bodies shall adopt criteria and guidelines to advance the Act and zone objectives including establishing a minimum commitment of the number of housing units that are to be constructed in an enterprise zone within its jurisdiction(s) within a specific period of time by a builder or group of builders before requesting state qualified business status. A builder or group of builders that form a consortium for the purpose of constructing housing in an enterprise zone that has met requirements established by the local governing body or bodies may be nominated for enterprise project designation by the local governing body or bodies. In considering such nominations the governing body or bodies shall give preference to projects that address affordable housing as set forth in the criteria established by the governing body or bodies. The application for certification as a qualified business for state benefits may be submitted to the department on any day in a form prescribed by the department. The applicable governing body or bodies may certify a residential builder as a qualified business to receive local benefits in connection with housing construction activity in an enterprise zone within its or their jurisdiction without making an application to the department to assure compliance with the Act, §2303.402.
      3. (C) Forms. One original form must be submitted to the department to request certification as a qualified business, to request certification of new permanent jobs created or to request certification of retained jobs. One original form as provided by the Comptroller should be submitted to the Comptroller to request refunds of state sales and use taxes. The rules promulgated by the comptroller must also be followed to file a claim for tax refunds or reductions.
      4. (D) Neighborhood enterprise associations. Applications to the department for certification of a neighborhood enterprise association may be filed with the department on any day.
3. (c) Completeness. Each application or claim must be as complete as practicable, and must include the fee set forth in subsection (d) of this section. The department will stamp or otherwise designate the date on which it receives each application. The date stamped or otherwise designated for any application received after the close of business on any day will be the next day. A day is as defined in the Act and §176.1 of this title (relating to General Provisions).

4. (d) Fees. A nonrefundable fee to recover the department's cost of providing direct technical assistance relating to the enterprise zone program must accompany an application to the department in the amount of:

   1. (1) $500 for an enterprise zone designation;
   2. (2) $500 to amend the boundaries of a state designated enterprise zone;
   3. (3) $300 for an enterprise project designation;
   4. (4) $300 for application to change name or assume enterprise project designation as defined in §176.8(b) and §176.8(c) of this title (relating to Application Contents for an Enterprise Project);
   5. (5) $300 to adjust the total number of new jobs as specified in the original application as defined in Texas Government Code, §2303.405 (Application Contents for an Enterprise Project);
   6. (6) $300 for designation as a recycling market development zone;
   7. (7) $500 for residential builder certification as a qualified business for a three-year period;
   8. (8) $300 for certification as a neighborhood enterprise association. The fee must be submitted in the form of a cashiers check made payable to the Texas Department of Economic Development/Texas Enterprise Zone Program.

5. (e) Staff consideration of applications or job certification requests. Staff shall review the application or job certification request to determine if the application or job certification request meets the eligibility criteria under the Act and this title. A job certification request submitted by an enterprise project may cover multiple years. Businesses applying for designation and job certifications are subject to on-site inspection. Following staff review, the application will be submitted to the executive director for consideration. Written notification will be given to applicants of the final status of an application or job certification.

   1. (1) Not later than 15 days after the receipt of the application for enterprise zone designation or for zone boundary amendment, the department shall notify the applicant that it has received the application and note any omissions or clerical errors that exist in the application. The applicant has at least ten days after the date it receives notice of application omissions or clerical errors or 45 days from the date the application is received by the department to correct any deficiencies and to submit corrections to the application to the department.
   2. (2) Not later than five days after the deadline for accepting applications for enterprise project designation, the department shall notify the applicant that it has received the application.

6. (f) Consideration of enterprise zone and enterprise project applications.

   1. (1) Complete or corrected applications for enterprise zone designation that staff determines meet the eligibility criteria set forth in the Act and this chapter will be considered by the executive director. The executive director may approve the application or remand it to the applicant for further action. If the executive director approves the application for enterprise zone designation, a negotiated agreement to designate the enterprise zone will be initiated by the department and must be fully executed no later than the 90th day after the day of receipt of the application. If the agreement is not executed before the 90th day after the day of the receipt of the application by the department, the application is considered to be denied. The department shall inform the governing body or bodies of the specific reasons for the denial.
   2. (2) The department shall review the enterprise project applications that have qualified for consideration following staff review. The department will either approve the application, disapprove it, remand it to the applicant for further action, or make such other disposition of the application as may be appropriate. Enterprise project designation becomes effective immediately upon department approval of an enterprise project application and action to grant the designation. Written notice of the designation will simultaneously be given to the applicant governing body's or bodies' designated liaison or liaisons and the enterprise project applicant. The notice will include an effective date and an expiration date of the project designation which shall include the 90-day period immediately preceding the designation during which benefits under the designation may be allowed.
7. (g) Consideration of recycling market development zone applications. In the event that a recycling market development zone application is included as part of an enterprise zone designation, the consideration process will be the same as for enterprise zone designation except that the criteria to qualify an area for recycling market development zone designation must be met just as it must be met for an area already designated as an enterprise zone to be further designated as a recycling market development zone.

Source Note:The provisions of the §176.2 adopted to be effective February 24, 1988, 13 TexReg 624; amended to be effective July 24, 1989, 14 TexReg 3350; amended to be effective December 29, 1989, 14 TexReg 6643; amended to be effective August 29, 1990, 15 TexReg 4693; amended to be effective January 8, 1992, 16 TexReg 7641; amended to be effective January 13, 1994, 19 TexReg 68; amended to be effective September 11, 1995, 20 TexReg 6621; amended to be effective April 23, 1998, 23 TexReg 3825.